The equilibrium quantity of money in circulation is determined by the:
A. nominal interest rate, real income, and the price level.
B. decentralized interactions between households and businesses.
C. interaction of an upward-sloping money supply curve and a downward-sloping money demand curve.
D. Federal Reserve.
Answer: D
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Which of the following provide increased competition for public schools?
a. homeschooling b. charter schools c. vouchers d. all of the above
If you have a choice of consuming either two apples, three oranges, or one candy bar, the opportunity cost of the candy bar is:
a. two apples. b. three oranges. c. two apples and three oranges. d. two apples or three oranges, whichever you value more. e. the difference in the prices of the three options.
External costs are modeled by creating a new social cost curve that is
A. higher than the original supply curve. B. lower than the original demand curve. C. higher than the original demand curve. D. lower than the original supply curve.